Just what is a Texas Medicare Supplement Plan?
Texas Medicare supplement insurance policies can help cover health care costs that Original Medicare fails to cover, like co-payments, co-insurance, and deductibles. These plans are regulated by the state and federal government but marketed through private companies which compete against each other helping to keep consumer costs low. There are some services not provided by original Medicare, like medical care when you vacation away from the United States, that some Texas Medicare supplement plans will cover. When you have a Texas Medigap insurance policy, Medicare will pay its part of the Medicare-approved amount for insured health care costs and then your Texas Medigap policy pays its share. A Texas Medicare Advantage Plan is not the same as Texas Medicare supplement insurance policies. Texas Medicare supplemental insurance plans pay the expenses not covered by original Medicare, while Medicare Advantage Plans are different ways to get Texas Medicare benefits and are not guaranteed renewable.
For most, the best time to purchase Texas Medicare supplemental insurance is when they are turning 65. During the first six months at the time you turn 65 or when you first purchase Medicare Part B the insurance companies cannot turn you down and there is no medical underwriting. This is a significant benefit because there are many health conditions that will normally prevent you from purchasing a Medicare supplement. When shopping for a Texas Medigap plan it is important to note that the plans are all standardized. Which means that each plan by the exact same letter provides the exact same coverage. So in other words Medigap plans provided by AARP, Blue Cross Blue Shield, and Woodmen of the World all provide the very same coverage even though the companies all have premiums that can vary significantly in cost. There are essentially ten different Medigap plans and they are labeled using the letters A through N. I,H,I, and J are older policies that are no longer in use. To request a list of these plans and prices from different insurance companies please go here.
Texas Medicare supplement plan F covers all of the deductibles, copayments, coinsurance, and even the excess charges associated with Medicare. Medicare supplement plan G is the same as plan F with the exception of not covering the yearly Medicare Part B deductible. Often the yearly savings on the plan G premium is greater than the expense of the Medicare Part B deductible so it is clearly worth checking out.
Eight things to know about Texas Medigap policies
1. Several older Medigap policies had some sort of prescription drug coverage. No Medicare supplement insurance policies sold after January of 2006 have prescription drug coverage. You will need to get Medicare Part D for prescription drugs policy if you need insurance for prescription drugs.
2. Insurance companies cannot cancel your Medicare supplement insurance plan so long as you pay the premium. All standardized Medigap policies are guaranteed renewable even when you have health issues.
3. A Medigap plan can only cover one person. If you are married and want coverage for you and your spouse, you'll both have to buy separate Medicare supplemental insurance policies.
4. If you currently have a Medicare Advantage Plan, you can purchase a Medigap insurance plan, but make sure you can terminate the Medicare Advantage Plan before your Medigap policy starts.
5. In addition to the monthly Part B premium that for most comes out of your Social Security you have to pay a monthly premium to a private insurance company for your Medigap insurance.
6. Any insurance company that is licensed to sell insurance in your state can sell you a Medicare supplement policy.
7. If you have Medicare Medical Savings Account plan it is illegal for anyone to sell a Medigap policy to you.
8. A Medigap policy can only cover one person. If you and your spouse both want Medigap coverage, you'll both have to purchase separate Medicare supplemental insurance plans.
Clck here to go to the Texas Medicare website